Product and explain it’s concept
Product
A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form. Every product is made at a cost and each is sold at a price. The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted. Each product has a useful life after which it needs replacement, and a life cycle after which it has to be re-invented. In FMCG parlance, a brand can be revamped, re-launched or extended to make it more relevant to the segment and times, often keeping the product almost the same.
Concept of product, its levels and classification
One of the important elements of marketing mix is Product. Any firm is known by the product it is offering. The other elements of marketing mix are based on it. So there it is very important that the firm must have a sound product policy. Product is any object which satisfies the consumer needs. It can be in any form like tangible or intangible.
A product needs to be relevant: the users must have an immediate us for it. A product needs to be functionally able to do what it is supposed to. and do it with a good quality.
A product needs to be communicated: Users and potential users must know why they need to use it, what benefits they can derive from it, and what it does difference it does to their lives. Advertising and brand building best do this.
A product needs a name: a name that people remember and relate to. A product with a name becomes a brand. It helps it stand out from the clutter of products and names.
A product should be adaptable: with trends, time and change in segments, the product should lend itself to adaptation to make it more relevant and maintain its revenue stream.
Levels of product: According to Philip Kotler the levels of product are five. These levels are also known as consumer value hierarchy as each level is adding more consumer value.
(i) The first level of product is core benefit or core product which a consumer is actually buying.
(ii) The next level of product is basic product which includes the features, quality, design etc. of the product.
(iii) Then the third level is expected product which means expectations by the consumer regarding the product.
(iv) The fourth level is augmented product means to offer extra services to consumer than expected by them.
(v) The last level is potential product which means changes in the product in the coming future.. Thus, these above discussed are the levels of the product.
Classification of product
The product can be classified into five categories.
(1) Durable product- these are the products which have long life. They can be seen or touched. Like table, chair etc..
(II) Non durable product- these are the products which have short life, which perish quickly. They can also be seen or touched. Like fruits etc.
(III) Service- services can not be seen or touched. Like the service of chartered accountant, lawyer etc.
(IV) Consumer product- these are the products which are used by the consumer directly without processing. Like washing powder, biscuits etc.
(V) Industrial product- these are the goods which are used by manufacturer for further production like raw material.
